AFB,IncStock Is Currently Selling for $20 Per Share

question 23

Multiple Choice

AFB,Inc.stock is currently selling for $20 per share.The company completed a 5-for-1 stock split two days earlier.Two years ago,the company had a 2-for-1 stock split.If the stock splits had not happened,the price of AFB,Inc.stock would,other things being equal,be

• A) $140.00 per share.
• B) $200.00 per share.
• C) $100.00 per share.
• D) $2.00 per share.

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Definitions:

Storeroom

A room or area used for storing materials, tools, and equipment, typically within a manufacturing or production facility.

Job-Order Costing

A technique in accounting aimed at recording expenses and assessing the income potential of single tasks or collections.

Direct Labor Costs

Wages and other expenses for employees who are directly involved in the manufacturing of products.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services, forming a significant component of manufacturing costs.